UBS: Rumor has it that Changjiang Infrastructure Group (01038) and others are seeking sale, and Australian energy companies maintain the Changhe (00001) target price of HK$101 and a “buy” rating

The Zhitong Finance App learned that UBS released a research report stating that it maintains the Changhe (00001) target price of HK$101 and a “buy” rating. The bank said that according to the Australian media “Australian Financial Review”, Changhe's subsidiary Changjiang Infrastructure Group (01038), which holds 76% of the shares, has commissioned Morgan Stanley and Barclays to begin selling the shares of EDL Energy (Changhe actually holds 36% of the shares), an Australian sustainable distributed energy producer. The valuation is estimated to be between 2 to 3 billion Australian dollars.

According to the report, EDL Energy is mainly engaged in clean and renewable electricity, renewable natural gas and remote renewable energy businesses, and its main customers include Glencore and Rio Tinto. The bank estimates that the proceeds from this transaction may account for 1.4-2.1% of the market value and market value. Assuming there are no losses or profits from this sale, Changhe's net debt ratio is expected to be reduced by 2 percentage points if sold within the above valuation range. If the deal is successful, this will be the third time that Changjian, Changshi Group (00001), and Electric Energy Industries (00006) consortiums have sold a co-invested infrastructure project after selling the British Power Networks and British Railways UK Rails earlier this year.